The Statistical Institute of Clever Island has provided the following information for the year 2020. The figures are listed in billion of dollars ($ billion). Assume that in 2019 the financial and government sectors were in equilibrium, but the external sector had a net injection of $200 billion.

Exports (X) = 800

Imports (M) = 900

Savings (S) = 400

Private investment = $300

Taxation (T) = 800

Government expenditure (G) = 900

In relation to thecircular flow of incomemodel for 2020, which of the following is correct?

Select one:

a.Net leakages are equal to $100 million

b.Net leakages equal $300 billion

c.Net injections are equal to $100 million

d.Injection equals leakages

The Statistical Institute of Lilliput has provided the following information for the year 2020. The figures are listed in billion of dollars ($ billion). Assume that in 2019 the financial and government sectors were in equilibrium, but the external sector had a net injection of $200 billion.

Exports (X) = 800

Imports (M) = 900

Savings (S) = 400

Private investment = $300

Taxtion (T) = 800

Government expenditure (G) = 900

The sector that contributed most to the change in economic activity in 2020 compared to 2019 was

Select one:

a.The external sector

b.All sectors contributed equally to the change in economic activity in 2020

c.The government sector

d.The financial and external sectors

Which of the following isNOTa factor of production?

Select one:

a.Natural resources

b.Labour

c.Entrepreneural skills

d.Goods and services

Inflation generally occurs during _____________.

Select one:

a.Recessions

b.Economic booms

c.Periods of hyperinflation

d.Times of deflation

The employment rate is computed by the_________.

Select one:

a.The Ministry of Labour

b.The Ministry of Finance

c.The Statistical Institute of Jamaica

d.Statistical Bureau of Labour

Which of the following is a macroeconomic topic?

Select one:

a.the reasons for the rise in the price of Captain Bakery's bread

b.whether the army should buy more tanks or more guns

c.the reasons for the rise in average prices

d.why plumbers earn more than janitors

In broad terms the difference between microeconomics and macroeconomics is that

Select one:

a.microeconomics studies the effects of government taxes on the national unemployment rate.

b.microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy

c.they use different sets of tools and ideas.

d.macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not.

The statement that ________ is a positive statement.

Select one:

a.more students should study economics

b.the price of sugar in the Jamaica is higher than the price in Guyana.

c.too many people in Jamaica have no health care insurance

d.the price of gasoline is too high

The condition of a continually rising price level is defined as

Select one:

a.Stagflation

b.Disinflation

c.inflation

d.Stagnation

The Circular Flow Diagram is a model showing

Select one:

a.the relationship between major sectors of the economy.

b.the relative importance of the different sectors of the economy.

c.that the different sectors of the economy are interdependent.

d.how the market system works.

Positive statements do not contribute to the development of the country's economic policies.

Select one:

True

False

Microeconomic behavior is the sum of all the macroeconomic decisions made by individual households and firms

Select one:

True

False

Royalties would be considered to be part of the income payments flow in thecircular flow of income.

Select one:

True

False

The savings of households is considered to be an injection in the circular flow of income.

Select one:

True

False

The aggregate demand for bread has fallen due to hikes in price. This is a good example of inflation at work.

Select one:

True

False

In some countries it is acceptable as norm to have an unemployment rate of five percent.

Select one:

True

False

In the five sector model of thecircular flow of income, the businesses are referred to as the factor market.

Select one:

True

False

The employment rate is the number of people employed divided by number of people in the labor force.

Select one:

True

False